GSS has headed off months of channel speculation by confirming that it is on the verge of merging with rival security VAR Peapod.
Rumours first surfaced that Peapod, which was plucked from administration by private equity firm Global Emerging Markets in 2002, was up for sale in May, with Websense partner GSS among the fancied suitors.
David Hobson, managing director of Worthing-based GSS, said: “I can confirm we are in discussions to merge with Peapod and believe there will be massive benefits for all parties, including clients and staff.”
Earlier this year, Peapod relocated its offices from Heathrow to Bracknell. The mid-market specialist boasts partnerships with the likes of Trend Micro, Juniper and SurfControl, and offers consulting and systems integration services.
Onlookers argued the deal will allow GSS, which already counts Virgin Money among its clients, to take on the security channel’s top guns.
Mukesh Gupta, managing director of security distributor e92plus, said: “Both GSS and Peapod have their niches. Putting them together will give the likes of Integralis and Vistorm a run for their money.”
Dave Ellis, director of e-security at specialist distributor Computerlinks, said: “Peapod would augment GSS pretty well because of its consulting skills and value-add.”
Bernie Dodwell, European security manager at distributor Westcon Group, said the potential union was a sign that the security channel was maturing. “This isn’t the first and it won’t be the last acquisition we’ll see in the security space,” he said.
Race to pop Peapod hots up